When should a consumer be advised in writing that an agency relationship exists?

A consumer should be advised in writing that an agency relationship exists at the start of work as a designated agent. This requirement is essential because it ensures that the consumer is aware of the nature of the relationship and the obligations that come with it.

An agency relationship establishes fiduciary duties, including loyalty, confidentiality, and full disclosure. Informing the consumer at the beginning of the working relationship helps to create transparency and trust. It allows the consumer to understand how the agent will represent their interests and what to expect from the relationship.

By providing this information upfront, the licensee sets the stage for a professional relationship and complies with legal obligations. This practice also helps in protecting both the agent and the consumer by clarifying roles and responsibilities from the outset.

In contrast, advising the consumer at the time of closing, before any payment is made, or before listing the property does not ensure that they have an understanding of the agency relationship when it is most impactful—right at the onset of the agent-consumer interaction. Waiting until later in the process could lead to confusion or misunderstandings about the roles of those involved.